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Evidence of insider trading found against aerospace giant

Updated
Wed 2 Apr 2008, 7:36 AM AEDT

The national financial regulator in France, the AMF, has said it has found evidence of insider trading at the giant aerospace company European Aeronautic Defence and Space Company (EADS), the parent company of the aircraft maker Airbus.

The AMF has alleged that the company has misled the financial markets, and says it will inform prosecutors in Paris immediately.

The AMF said there was cause for complaint against several people at EADS over share deals at the end of 2005 and in early 2006.

The dates are shortly before the group was overtaken by a crisis in its main subsidiary, Airbus, which caused boardroom changes and a vast restructuring program to slash costs and streamline production of airliners.

EADS has denied any wrongdoing and says it will vigorously defend itself.